FHA Loans - Refinance or Purchase with an FHA Loan

FHA Loan Benefits:

Credit Scores are NOT used to determine eligibility. Perfect credit NOT required.

Money for a down payment can be gifted from a friend or relative.

Easy, Convenient, Low monthly payments.

New FHA Loan Limits - FHA now offers loans up to $729,750.

Is an FHA Loan right for me?

FHA loans are government insured mortgages that offer lower down payments and simplified qualifying guidelines to borrowers. They are available to purchase a home or to refinance an existing mortgage loan.

FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans. FHA loans appeal to a wide range of borrowers because of their flexibility.

FHA loans are great for:

First-time home buyers

Borrowers with little money to put down to buy a new home

Regular people with less than perfect credit

People with little or no credit record

Homeowners looking to do some home improvements

Existing homeowners looking to consolidate bills or to cash-out some of the equity in their home.

Purchasing a home with FHA:

FHA loans are extremely popular for people looking to buy a home. One of the main reasons is the low minimum down payment required. The down payment required is approximately 3% of the sales price. Compare that with many conventional loan programs that require as much as 20% down and you can easily see why FHA mortgage loans are a very attractive loan for people looking to buy a home.

FHA loans are HUD loans, or loans that are guaranteed by HUD (the Department of Housing and Urban Development.) This means that HUD will guarantee the loan, or ensure that if you default on the loan that HUD will pay part of the loan amount to the lender.

FHA loans are recommended for those borrowers who are first-time buyers, have little money to put down, have a short credit history, or are having trouble qualifying for a Conforming loan.

Who will most benefit from an FHA Loan?

An FHA loan is best for someone who doesn't have perfect credit and individuals who need low down payments and low closing costs. An FHA loan is also more forgiving of a past bankruptcy, and allows a cash-strapped borrower to have their down payment gifted by a friend or relative.

An FHA loan is the ideal choice with someone who is a first time home buyer or has less-than-perfect credit because an FHA loan has no minimum credit score. This is possible because FHA mortgage loans are insured by the government. In today’s crazy credit markets, that means a lot to lenders and investors because it provides them with a level of security against default not offered with other loans.

An FHA loan isn’t a government loan or grant. The loan is created through a home mortgage you get from a lender but it is backed by the FHA. If you default on an FHA loan the lender gets paid out of the FHA's insurance fund. An FHA loan is really a bank/mortgage company loan backed by a guarantee from the government. If you fail to pay the mortgage, the government guarantees that they will repay the bank.

Mortgage Refinancing is also available – even if you don’t currently have an FHA backed mortgage loan.

Looking at refinancing your mortgage on your primary residence, second home or rental property? We have many competitive mortgage programs for that as well. Refinancing with a FHA mortgage loans also gives you the option for a cash-out refinance. With this type of loan, you can cash-out up to 95% of the property value.

So, build that dream kitchen you’ve always wanted, add a swimming pool to the back yard, consolidate your credit card debts, pay for your child’s college education, or take that vacation to that exotic tropical island you’ve always dreamed about.

With an FHA loan, you’ll have access to the money you need for the luxuries in life you deserve.

Actual payments will vary based on your individual situation and current rates or lenders in our matching network.

Some products may not be available in all states.

Lending services may not be available in all areas.

Some restrictions may apply.

Based on the purchase/refinance of a primary residence.

We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 45%; and credit score is over 720.

The lock period for your rate is 30 days.

If LTV > 80% PMI will be added to your monthly mortgage payment.

Max LTV for FHA is 97% for purchase and rate/term refinance - 95% for cash out refinance.

For FHA Loans if LTV > 80% - the payment will include a one time upfront mortgage insurance premium (MIP) at 1.5% of the base loan amount and a monthly MIP calculated at 0.50% of the base loan amount. The 0.50% monthly MIP will be paid until the loan reaches 78% LTV, provided the MIP has been paid for a minimum of 5 years. All loan amounts subject to FHA maximum loan limits in your area.

The example provided is a quote provided by one of the lenders in our matching program network. LenderQuotes.net is not a lender in any transaction. Rates & Terms are subject to change without notice.

Disclaimer: We are not affiliated with any government agencies, including FHA, VA or HUD. For more, read our Terms of Service.

- LenderQuotes.net is the authority for information about FHA Loans including FHA Mortgage Loans as well as FHA Loan Lenders.